TECHNICAL REPORT JUDY 1 tenure no. 735182) MCDAME MTN tenure no. 821402) LIARD MINING DIVISION BRITISH COLUMBIA, CANADA NTS 104P UTM Zone 9) E, N Event No. 5400212 Owner: Operator: Stephen Gerald Gerry) Diakow Farshad Shirvani, MSc. Date of Report: October 3, 2012.
Contents 1.0 INTRODUCTION... 1 2.0 STRUCTURAL STUDY... 1 3.0 STATEMENT OF QUALIFICATIONS... 2 4.0 COST STATEMENT... 2 List of Figures Figure 1: Project Location in BC... 3 Figure 2: Tenure Map... 4 Figure 3: Geology Map... 5 Figure 4: Hill Shade Imagery Azimuth 0 Direction... 6 Figure 5: Hill Shade Imagery Azimuth 45 Direction... 7 Figure 6: Hill Shade Imagery Azimuth 90 Direction... 8 Figure 7a-d): Lineaments Statistics... 9
1.0 INTRODUCTION The Judy 1 and McDame Mtn mineral tenures, located from three to six km northeast of Cassiar townsite, northwestern British Columbia, Canada Figures 1 and 2) comprise 413 ha and 214.9 ha respectively. They lie on the east flank of McDame Mountain of the Cassiar Ranges, at the headwaters area of several small northeast flowing tributaries of Quartz Creek. Elevations vary from 1220 to 2070 metres 4000 to 6800 feet) a.s.l. The terrain is entirely alpine with steep slopes and few evergreen trees. The tenures may be accessed from the valley of Quartz Creek but fieldwork, for practical purposes, is likely to require helicopter support. The mineral tenures are held by Stephen Gerry Diakow of Tsawwassen, B.C. and are situated immediately east of the former Cassiar mine. In addition to the Cassiar mine, the district is host to a broad range of mineral deposits, including significant but non-economic molybdenum, tungsten, gold, silver, lead, zinc, and barite occurrences. Principal infrastructure elements are Highway 37, the Stewart-Cassiar route, and small settlements of Good Hope Lake, population 90, and Cassiar, population 25. Seasonal placer mining operations are situated on several nearby streams and the former Cusac and Erickson underground gold mines are 20 km south. The Judy 1 and McDame Mtn tenures were acquired in recognition of their location in a geologically prospective area that, due in part to its proximity to the Cassiar mine, appeared to be under-explored. In addition, Quartz Creek in the valley has a long history of placer gold production. Gold is reported to be consistently coarse grained and rough, indicative of a nearby source. That source is attributed, by provincial geologists among others, to quartz veins related to carbonate and listwanite alteration in various basaltic members of the Sylvester Allocthon and, more specifically, the Slide Mountain Complex SMC) of Paleozoic to Mesozoic age. The SMC overlies continental sedimentary rocks of Paleozoic age and comprises a diverse assemblage of fine clastic sedimentary rocks, basalt, and ultramafic and gabbroic units. Rare occurences of eclogite are indicative of very deep reaching, possibly mantle level, structures. Figure 3 of this report illustrates not only the local and regional geology of the area but also the imbricated thrust faults and crustal shortening resulting from emplacement of the Sylvester and the later emplacement of the massive granitic Cassiar Batholith. 2.0 STRUCTURAL STUDY, at the request of Mr. Diakow, examined the apparent structural fabric of the Judy 1 and McDame Mtn mineral tenures. The study included an area centered on the tenures and extending up to ten km from the tenures. Working with, variously, Geosoft, ArcGIS, AutoCAD and MicroDEM, computer software packages, images developed from digital elevation models, and using a light source at variable elevations and orientations, with reference to physical features, including streams, mountain ranges, and mapped fault systems, approximately 980 observations of fractures and lineaments were recorded. The systematic rotation of the assumed distant light source from 0 to 045 to 090, as shown in Figures 4 to 6, ensured more complete coverage in an area of high topographic relief and enabled observations in areas that would otherwise have been obscured by shadows. Figure 7 includes a series of rose diagrams that summarize the orientation and lengths of the fractures and lineaments. The diagrams are divided in 7.5 increments. Figure 7a) illustrates the observed median length and number of fractures and lineaments in each 7.5 segment; Figure 7b) partitions on the basis of frequency; Figure 7c), on the basis of length, and 7d) presents the average length of features. Figure 7c) shows greatest lengths in the 060 direction, with strong 135 and moderately strong 000. The number of east-west and north-south features Figure 7b)) are about equal whereas Figure 7c) gives a distorted interpretation of length that results from the observation of a very long and strong lineament positioned against the southeast facing escarpment of a mountain range located south of Troutline Creek. That lineament appears to persist across that creek and at its northeast end may be erased or cut by the major thrust fault. If that 1 Page
feature were eliminated from the data, a more credible pattern of northwest and north fracturing, more compatible with observable geographic and geomorphologic data, would emerge. Figure 7d), showing the average length of fractures and lineaments, is in fairly close agreement with Figure 7a), thus indicating that, statistically speaking, the data are sound. The strongest direction is 052.5 to 075, the second, 015, and the 090 features are the shortest. The structural patterns observed from the imagery analysis show a strong concentration of fracture features in the area lying between Quartz Creek on the east and the Cassiar Batholith to the west. This is attributed at least in part to the presence in that area of the westernmost and perhaps strongest, deep-seated thrust fault that marks the limit of the Sylvester Allocthon. That thrust, which may be composite, emplaced numerous ultramafite bodies, including that which generated the Cassiar open pit) and McDame Mountain underground) orebodies. No distinctive features were found to be specifically associated with the Judy 1 and McDame Mtn mineral tenures. 3.0 STATEMENT OF QUALIFICATIONS prepared the structural analysis of the Judy 1 and McDame Mtn mineral tenures that is the subject of this report. Farshad Shirvani, MSc., principal of Terracad, recorded the structural features and the rose diagram statistical composites. Mr. Shirvani is a geologist with many years experience in working with satellite imagery and with various software programs used in the analysis of such imagery. 4.0 COST STATEMENT The cost of the structural analysis that is the subject of this report, complete with preparation of this report, was $5200. 2 P age
140 0'0W 130 0'0W / 120 0'0W McDame Mtn. Project 60 0'0N [ 140 0'0W Stewart Terrace Smithers Prince George Williams Lake 50 0'0N Revelstoke Merritt Courtenay Vancouver 50 0'0N Nelson Penticton Victoria 130 0'0W 80 0'0W 30 0'0W Inuvik 0 50 100 200 300 400 500 Whitehorse Iqaluit [McDame Mtn. Project Yellowknife McDame Mtn. Project 50 0'0N 50 0'0N Project Location in British Columbia Edmonton VancouverCalgary Saskatoon Regina Québec Winnipeg Halifax SudburyOttawa 0 500 1,000 2,000 130 0'0W Toronto 80 0'0W FS 120 0'0W 1 Long/Lat
/ 735182 821402 McDame MTN Project Tenure Map 0 250 500 1,000 1,500 2,000 2,500 2 Meters
/ CmOKlc LKgr upris upris upris lcmab SDRa CmOKlc DMEmd SDRa OSR DMEmd MSMDvb LPzSMUec mmpch SDRa DMEmd SDRa mmpch 735182 PSMUec PSMUgb PSMUec PnPSDvb LPzSMUec MSMDvb PSMBdb PSMUgb LPzSMUec MSMmd PSMBus Legend Claim Boundary Lineaments Fault Thrust Geological Unit LKgr - Mesozoic - Unnamed granite, alkali feldspar granite intrusive rocks EKC - Mesozoic - Cassiar Batholith granite, alkali feldspar granite intrusive rocks utrsmd - Mesozoic - Slide Mountain Complex - Division Ii limestone, slate, siltstone, argillite PSMBdb - Paleozoic - Slide Mountain Complex - Blue Dome Fault Zone diabase, basaltic intrusive rocks PSMBus - Paleozoic - Slide Mountain Complex - Blue Dome Fault Zone serpentinite ultramafic rocks PSMUec - Paleozoic - Slide Mountain Complex - Ultramafic and Gabbroic Thrust Sheets eclogite/mantle tectonite PSMUgb - Paleozoic - Slide Mountain Complex - Ultramafic and Gabbroic Thrust Sheets gabbroic to dioritic intrusive rocks upzsd - Paleozoic - Slide Mountain Complex - Division Ii basaltic volcanic rocks PnPSDvb - Paleozoic - Slide Mountain Complex - Division Ii basaltic volcanic rocks mmpch - Paleozoic - Unnamed chert, siliceous argillite, siliciclastic rocks MSMDvb - Paleozoic - Slide Mountain Complex - Division Ii basaltic volcanic rocks MSMmd - Paleozoic - Slide Mountain Complex mudstone/laminite fine clastic sedimentary rocks LPzSMUec - Paleozoic - Slide Mountain Complex - Ultramafic and Gabbroic Thrust Sheets eclogite/mantle tectonite DMEmd - Paleozoic - Earn Group mudstone/laminite fine clastic sedimentary rocks - Paleozoic - McDame Group limestone, marble, calcareous sedimentary rocks 821402 SDRa - Paleozoic - Ramhorn Group quartzite, quartz arenite sedimentary rocks EKC lcmar OSR MSMDvb utrsmd upzsd OSR - Paleozoic - Road River Group limestone, slate, siltstone, argillite CmOKlc - Paleozoic - Kechika Group limestone, slate, siltstone, argillite lcmab - Paleozoic - Atan Group - Boya Formation quartzite, quartz arenite sedimentary rocks lcmar - Paleozoic - Atan Group - Rosella Formation limestone, marble, calcareous sedimentary rocks upris - Proterozoic - Ingenika Group - Stelkuz Formation undivided sedimentary rocks OSR SDRa DMEmd utrsmd lcmab utrsmd McDame MTN Project lcmar Geology Map 0 0.5 1 2 3 4 5 OSR utrsmd 3
Legend Claim Boundary Lineaments / Fault Thrust McDame MTN Project Hill Shade Imagery Azimuth 0 Direction 0 0.5 1 2 3 4 5 4
Legend Claim Boundary Lineaments / Fault Thrust McDame MTN Project Hill Shade Imagery Azimuth 45 Direction 0 0.5 1 2 3 4 5 5
Legend Claim Boundary Lineaments / Fault Thrust McDame Mtn. Project Hill Shade Imagery Azimuth 90 Direction 0 0.5 1 2 3 4 5 6
0 N Numerous small fractures and lineaments N Least number but longest W E W E Numerous but small 0 100 200 S 300 400 500 m 10 20 S 30 40 50 Scale Median) Fig 7a): Median Length Scale Count) Fig 7b): Number N N 15 52.5 75 W E W E 105 shortest S 0 300 600 900 1200 1500 m Scale Maximum) 0 S 100 200 300 400 Scale Average) 500 m McDame Mtn. Project Lineament Statistics Fig 7c): Length Fig 7d): Average Length 7